Several First Nations say they are owed surplus federal land and were not properly consulted before Ottawa transferred most of Kapyong to Canada Lands, the Crown redevelopment firm. The issue has been tied up in court since 2005.

The City of Winnipeg cannot move forward with its plan to widen Kenaston to six lanes between Ness and Taylor avenues without negotiating for a portion of the Kapyong land.

Katz said he hopes the two sides will reach a deal.

"If they can resolve the issue outside of court it's very positive," he said following this morning's executive policy committee meeting. "We know there's millions of dollars flushed down the toilet that no one is benefiting from as a result of the land just sitting vacant."